An Analytical Model for External Auditor Evaluation of the Internal Audit Function Using Belief Functions

Desai, Vikram; Srivastava, Rajendra P.

doi:10.2139/ssrn.938183

Cited by 7 publications

(9 citation statements)

References 31 publications

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“…Several research studies examined the degree of reliance of EAs on the work of IAs, particularly in relation to IA objectivity, competence, and work performance. These studies ranked the three factors in order of importance (e.g., Brown, ; Desai et al, ; Krishnamoorthy, ; Maletta, ; Messier, Reynolds, Kenneth, Chad, & Wood, ; Messier & Schneider, ; Schneider, , , ; Suwaidan & Qasim, ). Overall, these studies have shown that competence, objectivity, and work performance are important for EAs to make a decision in regard to reliance on an IA's work, even though there are differences in their order of importance between the various studies.…”

Section: Literature Reviewmentioning

confidence: 99%

“…According to Ganzach (), experienced decision‐makers are more likely to consider decision cues configurally . In that regard, Desai, Roberts, and Srivastava () report that IA objectivity, competence, and work performance are interdependent, such that EAs' judgments of the IAs remain high even if one of these factors is evaluated negatively; thus, further empirical verification is needed. Moreover, auditors seem to have relatively high levels of self‐insight (Ashton, ; Gibbins & Swieringa, ; Solomon & Shields, ) as a result of the audit profession's auditing standards and consistency in auditor training (Libby, ; Pike, Sharp, & Kantor, ).…”

Section: Introductionmentioning

confidence: 99%

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External auditor reliance on the work of the internal audit function in Jordanian listed companies

et al. 2018

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This study investigates the factors that influence external auditor (EA) reliance on the work of the internal audit function (IAF) in Jordanian listed companies (JLCs). It evaluates the effect of internal auditor objectivity, competence and work performance as perceived by senior Jordanian EAs. The study employs a mixed method comprising a survey‐based factorial experiment in addition to semi‐structured interviews. The results, based on 35 fully‐crossed factorial experiments and nine interviews with senior EAs and external audit managers, show that IAF objectivity has the greatest influence on the EA's decision to rely on the work of the IAF, followed closely by IAF competence and IAF work performance. Further, there was a significant interactive effect between objectivity and competence, indicating that the EAs do not consider the influence of individual factors in isolation. In interviews, the EAs put forward many reasons for the importance of all three of the independent variables. Our results have direct implications for organizations as well as for professional bodies and regulatory authorities charged with encouraging the development of IAFs.

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Section: Literature Reviewmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

External auditor reliance on the work of the internal audit function in Jordanian listed companies

et al. 2018

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“…Desai, Roberts, and Srivastava () showed that external auditors looked at the interaction between the three main factors of quality (competence, quality of work performed, and objectivity) in evaluating the strength of the internal audit function and found interdependence among the three factors. Studies by Burnaby and Hass () also found that competence refers to technical competence involving understanding of the organization's business processes, including the risk management process.…”

Section: Theoretical Developmentmentioning

confidence: 99%

Deciding factors in cooperation and trust between internal and external auditors in organizations: An exploratory analysis

Morais

Franco

2019

Int J Auditing

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The general aim of this study is to assess the relationships between external and internal auditors concerning cooperation and trust as resources integrated in organizations' lines of defense, to favor solid, opportune, and transparent decision‐making in organs of governance. More precisely, the specific aims are: (1) to analyze the relationship between trust and cooperation; (2) to explore and analyze the categories of the mutually important factors for trust and cooperation; and (3) to analyze the differences between internal and external auditors. To achieve these goals, quantitative and exploratory research was undertaken, with data collection through surveys directed to the two auditor groups (internal and external) in Portugal. In order to analyze if there were relations between trust and cooperation, logistic regression was performed. Based on exploratory factor analysis of principal components, it was possible to extract three factors for cooperation and trust: (1) work performance, (2) coordination/collaboration, and (3) competence. A multiple linear regression was also used to check the differences between internal and external auditors for the three factors identified. From the two groups involved in this study, it was possible to gain each group's perception of the professional relationship concerning cooperation and trust as determinant variables in auditing. It was found that there is still a long way to go and that each group has slightly different perceptions. This study contributes to the scientific and professional community regarding the perception of cooperation and trust between these professionals.

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“…is theme concerns papers which describe studies about the internal audit unit of companies susceptible to audit, regardless of being a private, public, or nonpro t company. As examples we refer to outsourcing of internal audit, continuous monitoring, accounting knowledge, performance, competence, investment, management training ground, experience, ethics, and e ectiveness (Alic & Rusjan, 2011;Cohen & Sayag, 2010;Desai, Roberts, & Srivastava, 2010;Prawitt, Sharp, & Wood, 2012). It is a new theme not previously identi ed as showing its relevance (4.1%).…”

Section: Emerging Themesmentioning

confidence: 99%

Research in auditing: main themes

Porte

Saur-Amaral

Pinho

2018

Rev. contab. finanç.

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ABSTRACTe passage of the Sarbanes-Oxley Act (SOX) was a turning point in auditing and in auditors practice for the academic world. Research concerning the characterization of academic production related to auditing is in its third decade. Its analysis is accomplished by means of de nition of keywords, abstracts or title, and information on thematic association within the academic production itself in auditing is undisclosed. In order to revise this gap in auditing literature, this study identi ed the main themes in auditing and their association in post-SOX era by analyzing the content of objectives and hypothesis of 1,650 publications in Web of Science (2002Science ( -2014. e ndings in this study extended those from the study by Lesage and Wechtler (2012) from 16 auditing thematic typologies to 22. e results demonstrate that the themes audit report & nancial statement users, corporate governance, audit market, external audit, socio-economic data of the company, international regulation, and fraud risk & audit risk were the most addressed in the publications about auditing. Corporate governance has a broader association with the other themes in the area. Future researches may use these themes and relate them to the methodologies applied to audit studies.

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An Analytical Model for External Auditor Evaluation of the Internal Audit Function Using Belief Functions

Cited by 7 publications

References 31 publications

External auditor reliance on the work of the internal audit function in Jordanian listed companies

External auditor reliance on the work of the internal audit function in Jordanian listed companies

Deciding factors in cooperation and trust between internal and external auditors in organizations: An exploratory analysis

Research in auditing: main themes

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